CJ O’Shopping, CJ E&M set for merger
[THE INVESTOR] CJ Group announced on Jan. 17 the merger of its commerce and culture arms.
CJ O’Shopping, the nation’s largest home shopping company, and CJ E&M, which owns a number of television channels and entertainment businesses, will merge at 1:0.41 ratio. The merger will be completed by Aug. 1, after the agenda is approved at a shareholders meeting in June.
The two companies are targeting a 4.4 trillion won revenue target with 350 billion won operating profit for this year, with plans to push the revenue up by 15 percent a year by 2021.
CJ O’Shopping’s revenue in 2016 was 2.21 trillion won and CJ E&M’s 1.54 trillion won. Their operating profit was 178.8 billion won and 27.9 billion won, respectively.
Calling it “a preemptive move to dominate a new market where media and commerce converge,” the group cited Amazon and Alibaba’s expansion.
The merger will combine the capacity of the two firms so that they can secure maximum competitiveness and grow into a global business, said a CJ official.
Based on the huge customer data owned by the two firms, they could develop new services that will provide custom-tailored contents and merchandise. As they have already established foothold in Southeast Asian countries, the merger could bring about further expansion in overseas market, added the official.
By Hwang You-mee (email@example.com)